There has been a sharp reaction in New Zealand politics regarding the recently concluded Free Trade Agreement (FTA) between India and New Zealand. The country’s Foreign Minister and leader of the New Zealand First Party, Winston Peters, has strongly opposed this agreement, calling it ‘neither free nor fair’. He warned that the agreement was a ‘bad deal’ for New Zealand, in which the country had given too many concessions but received no concrete benefits in return.
‘Bad deal for New Zealand’
In a detailed post on social media platform X, Winston Peters said his party New Zealand First “regretfully opposes” the deal. They allege that in this FTA, serious concessions have been given on the immigration and investment front, while in return New Zealand did not get the expected benefits, especially in its major export sectors.
Allegations of loss to dairy farmers
Referring specifically to the dairy sector, Peters said that this agreement is not in the interests of New Zealand farmers. ‘This is not a good deal for New Zealand farmers and it is impossible to justify to our rural communities,’ he said.
More concessions on immigration, less benefits
According to Peters, New Zealand has given excessive concessions in the provisions related to immigration in the India-New Zealand FTA. He said that New Zealanders are not getting enough benefits from this agreement, especially in important sectors like dairy.
business expected to double
Despite Peters’ criticism, the governments of India and New Zealand have described this agreement as historic. Both countries say that this FTA can help in doubling bilateral trade in the next five years. According to the New Zealand government, under this agreement, duties will be eliminated or reduced on 95 percent of New Zealand’s exports to India, more than half of which will become duty-free from day one. In return, all Indian products will get duty-free access to the New Zealand market. New Zealand has also committed to invest about 20 billion dollars in India in the next 15 years, which is being considered a big step in terms of economic relations between the two countries.
Prime Minister Lakson said ‘an agreement with great benefits’
New Zealand’s Prime Minister Christopher Luckson defended this FTA, saying that it would provide wide-ranging and significant benefits. He said in the statement, ‘India’s vast size and rapid economic growth creates huge opportunities for jobs, exports and economic growth for New Zealand.’ The agreement also fulfills the promise made by Laxman’s National Party in the 2022 elections to finalize an FTA with India in its first term.
Differences exposed in coalition government
Winston Peters’ sharp reaction has made it clear that there are deep differences within the ruling coalition regarding the India-New Zealand FTA. In the coming days, this issue may become more heated in the domestic politics of New Zealand.
